16. If an economy suffers simultaneous negative aggregate demand and aggregate supply shocks, and the aggregate demand shock is larger than the aggregate supply shock, then:

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Chapter15: Aggregate Demand And Aggregate Supply
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16. If an economy suffers simultaneous negative aggregate demand and aggregate supply shocks, and the aggregate
demand shock is larger than the aggregate supply shock, then:
.
.
●
Real GDP will fall, and the price level will fall
Real GDP will fall, and the price level will rise
Real GDP will rise, and the price level will rise
Real GDP will rise, and the price level will fall
Transcribed Image Text:16. If an economy suffers simultaneous negative aggregate demand and aggregate supply shocks, and the aggregate demand shock is larger than the aggregate supply shock, then: . . ● Real GDP will fall, and the price level will fall Real GDP will fall, and the price level will rise Real GDP will rise, and the price level will rise Real GDP will rise, and the price level will fall
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